It's a good start but I found there to be a few problems, the major 1 is with the template - the component distorted it.
Secondly we have assigned menus to pages so when a term was clicked on in the glossary there was no menu assigned and there is no ability to assign the menu in this manner unless each individual item has a menu item created for it - it would be nice if the links could be optionally removed from the output within the glossary component so a visitor can't click on them and produce a new page, I'm sure this wouldn't be hard to hack but I simply don't have the time.
3rd when I used the categories they were sitting above the component title.
Next, I set the component to display all by default but nothing was displayed in the component - just a link saying 'All' - when this was clicked on it gave 0 results in a search output where there were actually 27 entries, the only way the terms could be viewed was through creating and clicking on the category.
As I said it's a good start, I would love to use this when the kinks are ironed out of it.